If someone could figure out a way to erase credit card debt legally, quickly and without having to file for bankruptcy or some other such thing, they would make a fortune. However, I don’t see this happening very soon. Getting into debt is so easy and almost fun for a while. But when those bills start to roll in, things don’t seem so fun anymore.
You have several options when you want to erase credit card debt. You can go the slow, less life-damaging way and go with consolidation. It could take years to erase credit card debt this way, but you will learn a lot about your finances this way and will likely be more responsible because of it. However, you can also file for Chapter 7 bankruptcy This is a way to instantly get rid of all obligations to pay your debts.
Erase Credit Card Debt Fast and Legally
You will have to really weigh your options here, however. Yes, you will be eliminating your debt, but you will also be setting yourself up to get awful rates for the next six to ten years. Every time you want to rent, own a new home, buy an appliance or do some home renovation, you will be subject to a credit check, they will see your big red flag, and you will either be turned down or get horrible rates.
If you do decide to file bankruptcy, however, and erase debt that way, there are a few things you will want to avoid. Each creditor can challenge your file. They are more likely to do so if you have suspicious activity with your card. These can be things like increased usage of the card previous to filing, recent use for vacations, exceeding the credit limit, using the card when unemployed or a large balance at the time of filing. Just be aware of what is going on with your debts first.
For Sale By Owner
When a home is for sale by owner, there is always the possibility that the owner wants to provide financing for the home. How this works is the owner assumes the same role that traditionally a bank or mortgage company fills. For sale by owner situations can help the seller save commission costs and offer buyers with difficulty obtaining a bank loan an opportunity to purchase a new home.
For whatever reason, many people who want to buy a home have difficulty obtaining a loan from commercial lenders with strict requirements. They may have a cash down payment ready in their pockets and a steady income to pay monthly payments. Here, the potential buyers will benefit greatly from a for sale by owner situation where the seller wishes to provide owner financing.
For Sale By Owner Promissory Notes
If the seller decides to provide owner property financing, he or she should draw up a promissory note to set out the repayment plan. Promissory notes are important legal documents that can eliminate misunderstandings. Banks and mortgage companies always have borrowers sign real estate notes. In a for sale by owner situation where the owner will finance, the promissory note is highly recommended, but not required.
If a note is constructed properly, the seller may decide to shop the note to promissory notes buyers and earn immediate cash. He or she may decide to sell the note to pay for a second home, a car, or a vacation. Some sellers grow tired of collecting monthly payments, or never felt strongly about financing the loan in the first place. A threat of foreclosure can also drive the owner to sell the note.